Tool hire services Speedy sheds half of debt ahead of B&Q trial
Equipment and tool hire services Speedy reported strong net debt levels this morning, as the company revealed it shed £46.1m in debt over the pandemic and saw its dividends double.
Despite revenue falling 10.6 per cent to £363.6m, in the year ended 31 March 2021, Speedy enjoyed a sturdy start to 2021’s financial year with net debt of £33.2m, 58.1 per cent less than the year before the pandemic.
Adjusted profit before tax also sank 40.7 per cent alongside earnings per share which were cut by 43.7 per cent, from 3.21p to 1.82p per share.
However, Speedy’s shares continued to fall into the afternoon by 4.94 per cent to 77p per share, after dipping by 1.91 per cent at the markets open.
“We froze all capital expenditure unless specifically needed to meet customer requirements and managed working capital tightly,” chairman David Shearer explained.
“As customers returned to work we resumed our capital expenditure to meet increasing customer demand, taking the opportunity to make significant investments in new sustainable hybrid and electric equipment.”
Dividends doubled since the year before, jumping from 0.70p per share to 1.40p.
“The resilient performance of our business during this unprecedented period is testament to the strength of our model, hard work of all my colleagues and strong operational delivery. Our excellent customer service, including our four-hour delivery commitment, has facilitated a strong recovery in the second half,” chief executive, Russell Down, said.
Making use of the government support schemes to navigate the first half of the year, the company has begun a trial with B&Q to expand its reach into the B2C market.
The tools hirer has also committed to a net zero by 2050 target, and are set to outline ‘science-based’ targets next year.
“The strength of our balance sheet and available financial resources will allow us to invest to meet increasing demand and capitalise on growth opportunities as activity levels continue to recover,” Shearer added.